![]() In addition to the requirements imposed on Drizly, Rellas must implement an information security program at future companies if he moves to a business collecting consumer information from more than 25,000 individuals, and where he is a majority owner, CEO, or senior officer with information security responsibilities.Īfter receiving no substantive comments, the Commission voted 4-0 to finalize the complaint and order against Drizly. In addition, Drizly is required to implement a comprehensive information security program and establish security safeguards to protect against the types of security incidents outlined in the complaint. It must also publicly detail on its website the information it collects and why such data collection is necessary. The FTC’s order, among other things, requires Drizly to destroy any personal data it collected that is not necessary for it to provide products or services to consumers and must refrain from collecting or storing personal information unless it is necessary for specific purposes outlined in a retention schedule. Kiichiro Sato/AP Photo The deadlines are approaching in July for class action settlements with companies such as Mercedes-Benz, Keurig, TikTok, and Wells Fargo. The class action lawsuit alleges the app of unlawfully gathering data from users younger than 13. The FTC said Drizly failed to implement basic security measures, stored critical database information on an unsecured platform, and neglected to monitor security threats. JTikTok has a minor privacy class action settlement against them. The Federal Trade Commission has finalized an order with online alcohol marketplace Drizly and its CEO over security failures by the company that the FTC said led to a data breach exposing the personal information of about 2.5 million consumers.Īccording to an FTC complaint first announced in October 2022, Drizly and its CEO James Cory Rellas were alerted to security vulnerabilities two years prior to the 2020 breach yet failed to take steps to protect consumers’ data from hackers despite publicly claiming to have appropriate security protections in place. CNN Drizly confirmed it suffered a massive breach earlier this month, saying data from 2.5 million accounts may have been stolen. About the FTC Show/hide About the FTC menu items.News and Events Show/hide News and Events menu items.Advice and Guidance Show/hide Advice and Guidance menu items.Competition and Consumer Protection Guidance Documents.Upon settlement, the Drizzly data breach. ![]() Enforcement Show/hide Enforcement menu items The data breach lawsuit claimed Drizlys security had not put up enough measures to protect consumers information.
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